Korean Job Discussion Forums

[bassexpander]

So this is an odd one...

I used to work at a private high school which paid into the national pension. For the past 2 1/2 years, I've been working in a private university, which has their own private plan.

My university got a call from some Korean national pension office, telling them that they want me to take out my pension money (it has gained some interest, and comes out to be about 4 million something).

Does this seem at all strange?

Granted, it's kind of nice, because I've wondered what I should do with that money. I've often wondered if I should keep it in or take it out.

Thoughts... suggestions? I think it's a good thing, but just wanted to float this story out there in case someone thinks I should refuse and just keep it in? Or would I be better off rolling it into some US plan (actually, I believe I can't do that because I must be making a US income)? I heard it can be put toward US social security? Not sure if that's true. Is that a dumb idea? Is it better to put into my own retirement account here?

[TheUrbanMyth]

But why do they want you to take out your money? And is it a demand (as in you MUST) or a request (as in they said it was a option)?

I'd call the pension office directly and inquire about this.

Did the university tell you this...and then suggest you put it in THEIR pension plan by any chance?

[matthews_world]

Sounds to me that they deem you an inactive contributor.

Perhaps they will send the unclaimed money to another authority for handling purposes.

Well, that's what happened to my small public school 401K in the States. I have to track it down.

Put the money to good use by depositing it into your second plan, earning you more.

[bassexpander]

I think, since I haven't contributed for a few years, they're probably calling about inactivity and want me to take it out. We'll probably do that. The woman who called was from the main office, and unfortunately, didn't leave her number. She left the local branch number and told us to call them. She sort of stressed that I should do it this month. Why, we don't know yet.

We can earn 6.9% from Prime bank on it anyway, so we'll just dump it in there.

[Yu_Bum_suk]

Perhaps getting an F2 visa had something to do with it?

[merkurix]

If you university is private, more than likely they have a private pension scheme that doesn't contribute directly to the National Pension like your other schools did. So you need to take that money out. But that was very nice of them to call you and tell you you need to do this. I had to figure that own on my own when I made the switch from public to private.

[Tobias]

Take it out and:

1. Put it into an EverRich account here. The EverRich banks are at the Korean post offices. I hear EverRich accounts accumulate good interest.

2. Open a T-bill account online through the US treasury department and roll it into your new account.

3. Drop it into a Roth IRA. This may require a flight back to the USA if you don't have one, though. I'll opt for this step.

[icnelly]

My first plans were to treat the pension money as a second severance pay and just use it for buying a car or computer or something else somewhat necessary back in the states, but I mean it is a pension fund, so now I'm planning on just rolling it into my IRA account, which I did open while over here.

Is it just my imagination or do many people treat it as extra cash money once they get it?

[matthews_world]

[quote="Tobias"]Take it out and:

1. Put it into an EverRich account here. The EverRich banks are at the Korean post offices. I hear EverRich accounts accumulate good interest.

Can E-2s do this?

Any penalty for early withdrawal?

[crsandus]

[OiGirl]

I have a Roth IRA that I opened many years ago before leaving for Korea for the express purpose of saving for retirement/education while in Korea. I think it should be no problem putting money in this while you are not working in the US.

[crsandus]

OK here we go. I finally took the plunge and went to the IRS site

http://www.irs.gov/publications/p590/ch01.html#d0e979

You can only contribute to an IRA or Roth with "compensation". The IRS site lists what compensation is and then makes a list of what is NOT considered compensation.

[denverdeath]

Whether you are an E-2 or an F-2 (or whatever) doesn't make that much of a difference. They're looking for contributions. You could be self-employed (gong-bu-bang/whatever). If that's the case, you'd still be req'd to pay into the nat'l pension plan if you weren't covered privately. I don't know about you, but I've received mailings from the nat'l plan a few times when I've fallen slightly off their radar. I moved to one private place six months ago from another private place, and received the same packet a few months back that I received when I went to my first private place. In the packet, they wanted me to select one of many options, one of which is "private teachers' pension fund enrollment," and send the application form back to them. You can let your money sit there if you want, but as others have said, you probably have higher-yielding options available to you. The only documentation you require when enrolled in the private plan is statement of employment from your current workplace and proof of enrollment in the private pension plan in order to get your lump-sum refund from the nat'l people. The strange thing is that they make mention of your ability to restore yourself to your former position with the nat'l program later if you pay back all received contributions plus interest. I guess it makes a bit of sense, but I figure not many choose that option. I also assume that I got the latest mailing because I had fallen off the radar temporarily when changing from one workplace to the next as it usually takes a month or two for the places to get things sorted the proper way. I also don't know why there was a call to take out your money. I had heard some sort of rumour about you not being able to get a lump-sum refund if you let your money sit for ten or more years, but never asked if that's true or not.